Question
Agri-Chem's contract with Enerco specified a maximum of 90,000 cu.ft. X 10 3 per day for its complexes. However, curtailments are projected to be based
Agri-Chem's contract with Enerco specified a maximum of 90,000 cu.ft. X 103 per day for its complexes. However, curtailments are projected to be based on actual usage rather than contractual maximums. The current natural gas usage is 85,680 cu. ft. x 103 per day. Enerco projects curtailments in the range of 20 to 40 percent.
Question:
Which of Agri-Chem's complexes would be least affected by a gas curtailment? (Using Excel Solver).
TABLE 1 Contribution to profit and overhead | |
Product | $/Ton |
Ammonia | 80 |
Ammonium phosphate | 120 |
Ammonium nitrate | 140 |
Urea | 140 |
Hydrofluoric acid | 90 |
Chlorine | 70 |
Caustic soda | 60 |
Vinyl chloride monomer | 90 |
TABLE 2 Operational data | |||
Product | Capacity (tons/day) | Production Rate (% of capacity | Natural Gas Consumption |
(1,000 cu. ft./ton) | |||
Ammonia | 1,500 | 80 | 8.0 |
Ammonium phosphate | 600 | 90 | 10.0 |
Ammonium nitrate | 700 | 70 | 12.0 |
Urea | 200 | 80 | 12.0 |
Hydrofluoric acid | 800 | 70 | 7.0 |
Chlorine | 1,500 | 80 | 18.0 |
Caustic soda | 1,600 | 80 | 20.0 |
Vinyl chloride monomer | 1,400 | 60 | 14.0 |
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